EUR/USD Eases from Highs, Yellen Eyed

EUR/USD Eases from Highs, Yellen Eyed

6 June 2016, 09:33
Roberto Jacobs
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EUR/USD Eases from Highs, Yellen Eyed

The single currency has abandoned the area of recent highs vs. the dollar, taking EUR/USD back to the 1.1345/40 band.

EUR/USD attention to Yellen

Spot saw its upside suddenly renewed on Friday after US Non-farm Payrolls have disappointed everybody during May, coming in at 38K vs. 164K expected, while the jobless rate has ticked lower to 4.7%.

A mild recovery of the greenback during the Asian session has prompted the pair to give away some pips, although it remains well above the 1.1300 handle.

All eyes will be on USD later in the NA session, as Chairwoman J.Yellen is due to speak. Consensus expects Yellen’s tone to confirm the recent bias exposed by her peers, a priori bringing in some relief for the buck. Other releases today will be the Sentix index in the euro area and the Fed’s Labor Market Conditions Index.

EUR/USD levels to watch

The pair is now retreating 0.24% at 1.1340 and a break above 1.1377 (post-NFP high Jun.3) would expose 1.1448 (high May 11) and finally 1.1466 (high Apr.12). On the flip side, the immediate support lines up at 1.1306 (55-day sma) followed by 1.1244 (20-day sma) and then 1.1195 (100-day sma).


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